Ferrovial N.v. · BME:FER
Ferrovial — Q1 2014 Earnings Presentation
51 slides from Ferrovial's earnings presentation, March 2014
Slide 1: Investing for growth
1Q 2014 Investing for growth ferrovial 1 2014 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 2: Disclaimer
Disclaimer This document may contain statements that constitute forward looking statements about the Company. These statements are based on financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations, which refer to estimates regardin
Slide 3: Agenda
Agenda Group overview 2014 – First Quarter results Looking Ahead I n t r o d u c t i o n t o 4 0 7 E T R To l l r o a d M a n a g e d L a n e s To l l r o a d s Appendix 3 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 4: Ferrovial Business Overview
Ferrovial Business Overview 2013 figures Leading European airport operator € 219mn Dividends from Airports INFRASTRUCTURE Ownership and manager of 4 UK airports, including Heathrow PROJECTS Leading sponsor of tollroads € 242mn Ring fenced debt infrastructure development worldwide Key developer of ET
Slide 5: How to manage
How to manage Low level Asset rotation Financially of corporate to support debt growth Operationally Efficient Operational asset value allocation generation 5 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 6: Debt Structure
Debt Structure EX–INFRA PROJECTS Net debt evolution ex-infra projects Q1 ‘14 1,484 1,663 1.565 907 NET CASH 31 €1,565mn 1,172 1,547 1,987 Net debt (€mn) 3,064 2006 2007 2008 2009 2010 2011 2012 2013 1Q14 PROJECTS Debt allocated at project level Projects under development not generating EBITDA €mn Ne
Slide 7: No meaningful maturities until 2018
No meaningful maturities until 2018 Financial position (ex-infra projects) € million - March ‘14 2014-2019 maturities 501 507 53 38 20 11 4 2014 2015 2016 2017 2018 2019 >2019 Liquidity position 881 3,620 2,739 Total cash Undrawn lines Total liquidity 7 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 3
Slide 8: Strong Backlog (Construction & Services)
Strong Backlog (Construction & Services) Backlog at Record levels Construction 25.6 30% +74% 70% Domestic International 14.7 18.1 Services Construction 7.2 Services (€ bn) 7.5 7.5 33% 2005 1Q2014 67% Domestic International 38% 67% International Strong backlog of €25.6bn as of 1Q2014 (40 months of ac
Slide 9: Highlights (2014 year to date)
Highlights (2014 year to date) 1 Financial N e w l i q u i d i ty F a c i l i ty ( € 7 5 0 m n ) 2 Future New managed lanes (I77) 3 Operations € 2 5 b n b a c k lo g (Construction & Services) 4 Cash Position €1.6bn N e t c a s h / €3.6bn L i q u i d i ty ex-infra projects 9 E-mail: ir@ferrovial.es –
Slide 10: Business Overview
Business Overview Airports Focus on quality service and cost control Higher traffic due to load – factor Q6 (2014-2018) New regulatory period T o l l ro a d s Focus on greenfield projects New concession award (USA) – I77 “managed lanes” Services Integration of Enterprise acquisition (UK) Focus on ca
Slide 11: Spain outlook (2013)
Spain outlook (2013) Industrial waste (Ferrovial) Activity cash flow (Ferrovial) Tons €mn 2012 -16.4% 2010-11 -26 2013 +1.9% 2013 +84 Traffic toll roads Improving days of sales outstanding Ausol I Ferrovial Services 211 201 1H’13 -17.6% 164 148 155 146 FY’13 -9.8% 120 Dec’13 +2.4% 2007 2008 2009 201
Slide 12: Agenda
Agenda Group overview 2014 – First Quarter results Looking Ahead I n t r o d u c t i o n t o 4 0 7 E T R To l l r o a d M a n a g e d L a n e s To l l r o a d s Appendix 12 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 13: Toll roads
Toll roads € million 1Q2014 ∆% •Pipeline L-f-L 91 -5.3% Revenues Active bidding in the US / Australia / Canada EBITDA 55 -2.1% EBITDA % 60.3% Selective monitoring of opportunities in Chile, Peru, Colombia, Mexico, Croatia, Ireland & UK. 1Q 2014 ∆% Traffic EBITDA • Traffic recovery in Ireland and Por
Slide 14: 407ETR
407ETR (Equity method, FERROVIAL stake: 43%) CAD million 1Q2014 ∆% • Revenue and EBITDA growth (+11%) L-f-L Traffic (+3.2%) 185 +11.2% Revenues Tariff growth EBITDA 150 +11.0% • No relevant maturities until 2015 EBITDA % 81.1% -20bps Net debt 5,701 +2.2% • Attractive dividend 680 Resilient performan
Slide 15: Services
Services € million 1Q2014 ∆% UK Spain L-f-L Revenues 1,032 +46% +82% Revenues +9% EBITDA 69 +6.1% +59% EBITDA -18% EBITDA % 6.7% -350 bps +3% BACKLOG -1% Backlog 18,105 +1.5 % L-f-L Backlog by geographic breakdown • Strong revenue growth both in UK and Spain 64% 35% UK Spain Other 1% • EBITDA affect
Slide 16: Amey - profitable growth
Amey -profitable growth Proven organic growth (sales) 2013: Enterprise synergies on track Amey £ million 35 40 £ billion CAGR: 9.7% Synergies 7 1.2 0.7 Net -9 +16 +40 19 16 2007 2012 Costs 2013 2014 (e) 2015 (e) UK Services market is growing Backlog: Anticipating future growth Amey/Enterprise active
Slide 17: Robust medium-term pipeline
Robust medium-term pipeline Amey Prospects pipeline Total: EUR 15.7B Client segment Year of award Nature 1) Local Newly Environment Government Outsourced > 2017 2014 15% 19% 16% 20% 19% 2016 Social 20% 20% 2015 81% 25% Transport Other 21% 44% Utilities Industrial 1) Projects with total revenues abov
Slide 18: UK Infrastructure Services market: c. EUR 54BN (2012)
UK Infrastructure Services market: c. EUR 54BN (2012) TRANSPORT ENVIRONMENTAL SOCIAL CORPORATE FS Top 3 18 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 19: Spain: resilient operations & financial performance
Spain: resilient operations & financial performance € billion Sales 100% EBITDA / Cash flow conversion Cumulative 2007 - 2013 Stability 1.39 1.42 1.33 1.37 2007 2013 EBITDA OCF Local government operating spend Backlog: Anticipating future growth 34.2 6.3 24.7 5.2 -28% 2007 2012 2012 2013 Source: Pre
Slide 20: Construction
Construction € million 1Q2014 ∆% ∆% L-f-L Budimex Webber F-A L-f-L Revenues 795 +0.7% Revenues +2% -9% +3% EBIT 50 +4.3% EBIT +28% +29% -2% EBIT % 6.3% +40 bps Backlog 7,489 -4.7% Backlog +5% -10% -5% Backlog by geographic breakdown • Flat growth and higher EBIT 70% 30% • Poland International Domest
Slide 21: HAH (Equity method, Ferrovial stake 25.0%)
HAH (Equity method, FERROVIAL stake 25.0%) 100% GBP million 1Q2014 ∆% • Best ever passenger satisfaction L-f-L Revenues 614 +10% Over 80% of passengers surveyed rated their experience as excellent or very good EBITDA 319 +28% EBITDA % 51.9% +712 bps • The Queen´s Terminal (T2) on track for opening o
Slide 22: Operating improvement - Heathrow
Operating improvement - Heathrow % passengers rating Heathrow Missed bags Departures punctuality “Excellent” or “Very good” per 1,000 passengers 84% 40 80% 63% 48% 14 2007 1Q 2014 2007 1Q 2014 2007 1Q 2014 22 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 23: 1Q 2014 results
1Q 2014 results EUR MN MAR´14 MAR´13 VAR.% L-f-L% MAR’14 MAR’13 Var% L-f-L% Construction 794.9 820.5 -3.1 0.7 Revenues 1,945 1,630 19.3% 20.8% Airports 1.3 1.8 -28.8 -28.8 Toll Roads 91.3 97.0 -5.9 -5.3 EBITDA 184 181 1.6% 4.1% Services 1,032.7 697.4 48.1 45.7 Others 24.6 13.2 86.0 77.7 EBITDA margi
Slide 24: Agenda
Agenda Group overview 2014 – First Quarter results Looking Ahead I n t r o d u c t i o n t o 4 0 7 E T R To l l r o a d M a n a g e d L a n e s To l l r o a d s Appendix 24 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 25: Strong financial discipline
Looking ahead CONSTRUCTION TOLL ROADS SERVICES AIRPORTS Margin vs. growth Dividends from 407 & HAH Strong backlog Attractive pipeline of projects Selective growth in existing & Co-investment with financial new markets partners Strong financial discipline 25 E-mail: ir@ferrovial.es – Tel: +34 91 586
Slide 26: Why Ferrovial?
Why Ferrovial? High Quality Strong Assets Backlog Dividend generation Highest ever International Solid Financial diversification Position EBITDA* Net cash position (2018 & 2021 main maturities) 24% 43% 22% 11% * 2013 (proportional consolidation) 26 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 27: Shareholder remuneration
Shareholder remuneration Dividend 2013 (Euros/share) Interim (paid Dec’13) 0.40 Complementary 0.25 - 0.30 TOTAL 0.65 - 0.70 1.25 0.65 - 0.70 0.40 0.42 0.45 2009 2010 2011 2012 2013 27 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 28: Agenda
Agenda Group overview 2014 – First Quarter results Looking Ahead Introduction to 407ETR Toll road M a n a g e d L a n e s To l l r o a d s Appendix 28 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 29: Would you buy this company…?
407 ETR Would you buy this company…? Figures in $CAN million Shareholder's fund Net debt 1999: 1999 775 1,937 27x Debt/Ebitda 2013 -1,694 5,577 Accounting High losses debt 29 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 30: Ferrovial bought this company…
407 ETR Ferrovial bought this company… Figures in € million Cash generation 407 ETR Valuation (1999 – 2013) (100%) Initial equity investment (62%) (326mn) 100% pay-back 9,536 Dividends (00 - 13) 1,051mn 18x 10% disposal 640mn first 10 years NET CASH IN 1,691mn 525 Valuation x18 1999 2013* Maturity 8
Slide 31: Area of expansion, East extension, High density population area
407 ETR Location Area of expansion 407 East extension High density population area Ring road of Toronto 108 km 407 31 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 32: All Electronic Roadside Tolling System
407 ETR All Electronic Roadside Tolling System 32 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 33: ETR Location Greater Toronto Area
Fast 407 ETR Safe Reliable LOCATION HIGH Greater Toronto Area HOUSEHOLD INCOME 23% of Canada 46% higher population than Canada average SPEED NO REGULATORY Alternatives routes REVIEWS 40kph vs 100kph at During concession 407 life (99 years) TOLL RATE HIGH TRAFFIC FLEXIBILITY Alternatives routes Inclu
Slide 34: Financial overview ($CAD million)
407 ETR Financial overview ($CAD million) Revenues Capital Expenditure 801 97 CAGR: 8.4% 90 88 72 77 70 74 420 49 84 years to maturity 38 2005 2006 2007 2008 2009 2010 2011 2012 2013 2005 2013 OPEX Dividends 136 680 CAGR: 3.4% 600 104 100% pay-back in first 10 460 years 300 190 145 120 135 85 2005 2
Slide 35: Recurrent presence in the bond market (June'13)
407 ETR ETRRecurrent presence in the bond market (June’13) Extending maturities at historically low cost CAD 2,950mn issued since 2009 500 400 400 Maturity 350 3,58% 40 years 300 300 300 3,49% 39 200 200 200 30 30 2009 2009 2010 2010 2010 2010 2011 2012 2012 2013 Yearly average maturity: Only 3% of
Slide 36: Agenda
Agenda Group overview 2014 – First Quarter results Looking Ahead I n t r o d u c t i o n t o 4 0 7 E T R To l l r o a d Managed Lanes Toll roads Appendix 36 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 37: Express Tollway within an Existing Highway
Managed Lanes New assets landmark “Express Tollway within an Existing Highway” Free Tolled Lanes Free Lanes Speed >50mph Lanes A solution to congestion on “existing urban corridors” by means of Active management of “newly added capacity” through tolling 37 E-mail: ir@ferrovial.es – Tel: +34 91 586 2
Slide 38: 407ETR (tolled) NTE (untolled)
Managed Lanes Level of demand NTE (untolled) 407ETR (tolled) Peak period Westbound Eastbound 00.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 12.00 2.00 4.00 6.00 8.00 10.00 12.00 2.00 4.00 6.00 8.00 10.00 12.00 Time of the day Time of the day 38 E-mail: ir@ferrovial.es – Te
Slide 39: Paying for predictability
Paying for predictability T r a v eTime Travel l T i mVariability e Variability 70 60 50 40 Time (min) Time (min) 30 Free Flow Travel Mean 20 10 0 NB AM NB MD NB PM SB AM SB MD SB PM NB - North bound SB - South bound • Free flow time of 14 minutes at 6.00AM • The average travel time during all time
Slide 40: Toll rates – tariff threshold
Toll rates – tariff treshold Toll Rate Toll Rate Cap 0.75 c/mi Demand threshold 3300 pce/h 2-lane sections Speed Speed Threshold 50 mi/h Demand 12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 Hour starting Analysis by segment and direction Freedom under the cap TOTAL FREEDOM Fre
Slide 41: Dallas and Fort Worth Regional Map
Dallas and Fort Worth Regional Map LBJ NTE 1-2 NTE 3 41 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 42: Lyndon B Johnson
Managed Lanes Lyndon B Johnson KEY CHARACTERISTICS DESCRIPTION: IH 635 (Dallas County), the most populous county in Texas LENGTH: 13 mile section of the IH 635 and IH 35E 108Km Electronic toll CONCESSION PERIOD: 52 years TARIFF POLICY: Open Road Tolling System (no toll booths) with a dynamic tolling
Slide 43: North Tarrant Express
Managed Lanes North Tarrant Express KEY CHARACTERISTICS DESCRIPTION: Dallas-Fort Worth Metroplex, Major thoroughfares between Fort Worth and DFW Airport LENGTH: 13 mile section (IH 820 & SH 183 in Tarrant County) CONCESSION PERIOD: 52 years TARIFF POLICY: Open Road Tolling System (no toll booths) wi
Slide 44: North Tarrant Express 35W
Managed Lanes North Tarrant Express 35W KEY CHARACTERISTICS DESCRIPTION: 2 “managed lanes” in each direction of the IH-35W, segments 3A and 3B (3B segment to be built by TxDOT) LENGTH: 10.2 mile section (segments 3A 6.2 miles and 3B 4 miles) CONCESSION PERIOD: 48 years TARIFF POLICY: Open Road Tolli
Slide 45: Financial Overview
Managed Lanes Financial Overview Figures in US Dollars Total Investment: 2.05 bn 2.70 bn 1.36 bn Private Equity: 21% 427 m 25% 665 m 32% 430 m Cintra: 243 m (57%) 339 m (51%) 215 m (50%) Meridiam: 141 m (33%) 282 m (42%) 167 m (39%) DPFPS: 43 m (10%) 44 m (7%) 43 m (10%) APG: 4 m (1%) Total Debt: 52
Slide 46: Appendix
Appendix 46 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 47: Appendix: 2013 - Full year results
Appendix 2013 - Full year results 47 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 48: FY 2013 results
FY 2013 results EUR MN DEC´13 DEC´12 VAR.% L-f-L% DEC’13 DEC’12 Var% L-f-L% Construction 4,063.6 4,325.6 -6.1 -4.5 Revenues 8,166 7,630 7.0% 9.0% Toll Roads 429.0 381.4 12.5 13.0 Services 3,656.3 2,895.0 26.3 29.3 EBITDA 934 927 0.8% 4.8% Others 17.6 28.3 n.s. n.s. Total 8,166.5 7,630.3 7.0 9.0 EBIT
Slide 49: Cash Flow generation 2013
Cash Flow generation 2013 Ex-Infrastructures projects Operating Cash Flow RoW Construction+Services 32% 21% 22% 14% 11% Dividends RoW From infra projects 45% 48% 7% Investment flow RoW 20% 66% 12% 49 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 50: Diversified portfolio
Diversified portfolio Ex – Infrastructure Projects Infrastructure Projects Services Construction Toll Roads Airports Non Capital Intensive Capital Intensive PROFIT GENERATION LONG DURATION CASH GENERATION LONG TERM VALUE Fully consolidated Method Proportional (1) €934Mn EBITDA €1,681Mn FY´13 30% 20%
Slide 51: Ferrovial Investor Relations
ferrovial INVESTOR RELATIONS DEPARTMENT - C/ Príncipe de Vergara, 135 - 28002 MADRID (Spain) T: +34 91 586 27 30 F: +34 91 586 28 69 e-mail: ir@ferrovial.es website: www.ferrovial.com